Shared-Use Food and Beverage Processing Facilities in B.C - Business Plan Guidebook
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Shared-Use Food and Beverage
Processing Facilities in B.C.
Business Plan Guidebook
Part I: A Step-by-Step Guide
Guide Contents 3........... 1.0 Introduction 3........... 1.1 Purpose 3........... 1.2 Terminology 7........... 1.3 Examples of Shared-Use Processing Facilities and Food Innovation Centres 9........... 2.0 Planning Your Shared-Use Processing Facility 9........... 2.1 Feasibility Study 10........ 3.0 Business Plan Outline 20........ 4.0 Additional Resources 20......... 4.1 Business Planning Consultants 21......... 4.2 Funding Opportunities 22......... 4.3 Suggested Resources 24........ Appendix A: 2019 B.C. Food and Beverage Industry Survey Results 25........ Appendix B: Feasibility Study Template 25......... Contents 25......... 1.0 Executive Summary 25........ 2.0 Introduction 25......... 2.1 Purpose of Study 26......... 2.2 Lead Organization and/or Project Manager(s) Leading the Study 26........ 3.0 Methodology 26......... 3.1 Project Timeline 26......... 3.2 Project Funding 26......... 3.4 Industry/Client Engagement Process 26........ 4.0 Findings 26......... 4.1 Overview of the Regional Agriculture and Food Sector 26......... 4.2 Existing Infrastructure and Services in the Region 27......... 4.3 Related Studies in the Region 27......... 4.4 Regional Industry/Target Client Needs and Opportunities 27......... 4.5 Proposed Facility Model 27......... 4.6 Financial Projections 29........ 5.0 Recommendations 29......... 5.1 Vision and Opportunities for the Shared-Use Processing Facility 29......... 5.2 Governance Structure 30......... 5.3 Potential Facility Locations 30......... 5.4 Potential Challenges and Opportunities 30......... 5.5 Suggested Next Steps 30........ 6.0 Conclusion 30........ Appendix C: Example Shared-Use Processing Facility Spaces, Equipment and Services 2 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan Guidebook
1.0 Introduction 1.2 Terminology
1.1 Purpose This guidebook uses the term shared-use
processing facility to refer to any commercial
The Business Plan Guidebook was created infrastructure with value-added food or
by the B.C. Ministry of Agriculture, Food and beverage manufacturing equipment that
Fisheries as a starting point for organizations is accessed by multiple food and beverage
that are interested in establishing shared-use businesses. The food industry uses many terms
food and beverage processing facilities in B.C. similar to shared-use processing facility – such as
The guidebook provides a high-level overview commissary kitchens, incubator kitchens and
of the B.C. food and beverage processing food incubators – and these variations reflect the
sector, business planning considerations for a ongoing evolution of innovative facility models.
shared-use processing facility in B.C., a business Definitions also tend to vary by jurisdiction and
plan template for a shared-use facility and regional needs. Overall, shared-use processing
additional resources. facilities tend to focus on supporting local food
production and processing activities and offering
food and beverage small-to-medium enterprises
(SMEs) access to facilities and equipment without
the associated high start-up costs of acquiring a
facility and equipment as an individual business.
Part I: A Step-by-Step Guide 3The table presented below introduces a range of food processing facility models (but is not exhaustive).
CRITERIA OF
SHARED USE
FACILITY DESCRIPTION OTHER ELEMENTS
PROCESSING
FACILITY
Shared-Use Commercial Food Production Space
Advanced Research & Development Services
Packaging, Bottling, & Labelling Services
Testing / Product Development Services
Aggregation & Distribution Services
Specialized Processing Equipment
Business Development Services
Basic Food Preparation Space
Office / Instruction Space
Shared-Use Processing Facility /
Commissary / Commercial Kitchen
Provincially- or federally-inspected
facility with professional food ✓ ✓ ✓ * * *
preparation space and value-added
food processing equipment, primarily
for commercial production purposes.
Community Kitchen
A standard kitchen with equipment and
supplies, generally found at community
centres, neighbourhood houses or
churches. These kitchens are normally
available to community groups or * ✓
catering businesses at reduced rates.
They may be accessed by small
business, but their primary purpose
is for serving social and community
objectives.
Incubator / Accelerator Kitchen
A commercial kitchen with business
development services for food business
start-ups. Typically for limited-time use, ✓ ✓ ✓ ✓ * ✓ *
before a business is able to move into its
own facility.
* Indicates elements that are generally (but not always) offered by the facility.Facility Description Criteria of Shared-Use Processing
4 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookCRITERIA OF
SHARED USE
FACILITY DESCRIPTION OTHER ELEMENTS
PROCESSING
FACILITY
Shared-Use Commercial Food Production Space
Advanced Research & Development Services
Packaging, Bottling, & Labelling Services
Testing / Product Development Services
Aggregation & Distribution Services
Specialized Processing Equipment
Business Development Services
Basic Food Preparation Space
Food Business Accelerator Office / Instruction Space
A short-term business program
including networking opportunities,
entrepreneurial training and industry
support services for food business start- * ✓
ups. Some programs have a competitive
selection process. May be offered
within or separate from a shared-use
processing facility.
Processing Centre / Co-Packer
Private sector facility with equipment to
process and package food and beverage ✓ *
products for other businesses.
Regional Food Processing and
Innovation Hub (according to
the Ministry of Agriculture, Food
and Fisheries BC Food Hub Network
program)
A shared-use processing facility for ✓ ✓ ✓ ✓ ✓ * ✓ ✓ *
small- to medium-sized food and
beverage producers and processors
that integrates food processing and
innovation activities and services.
* Indicates elements that are generally (but not always) offered by the facility.Facility Description Criteria of Shared-Use Processing
Part I: A Step-by-Step Guide 5CRITERIA OF
SHARED USE
FACILITY DESCRIPTION OTHER ELEMENTS
PROCESSING
FACILITY
Shared-Use Commercial Food Production Space
Advanced Research & Development Services
Packaging, Bottling, & Labelling Services
Testing / Product Development Services
Aggregation & Distribution Services
Specialized Processing Equipment
Business Development Services
Basic Food Preparation Space
Food Innovation / Office / Instruction Space
Development Centre
A large-scale commercial kitchen or
processing facility offering technical
expertise, business support and
advanced laboratory testing and
research and development (R&D) * ✓ * * ✓ ✓ * *
services. Typically has greater emphasis
on R&D services than providing access
to space for day-to-day production.
Generally owned by or in partnership
with government or academia.
Food Hub (according to the U.S.
Department of Agriculture) A regional
food hub is a business or organization
that actively manages the aggregation,
distribution, and marketing of source-
identified food products primarily * * * * ✓
from local and regional producers
to strengthen their ability to satisfy
wholesale, retail, and institutional
demand.
* Indicates elements that are generally (but not always) offered by the facility.Facility Description Criteria of Shared-Use Processing
6 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan Guidebook1.3 Examples of Shared-Use • Sprout Kitchen, Quesnel, B.C. (launching 2021):
Sprout Kitchen will offer space and support for
Processing Facilities and existing and emerging food entrepreneurs in
Food Innovation Centres the North Cariboo Region. Sprout Kitchen will
provide businesses with access to infrastructure
The following are examples of shared- and services including processing and testing
use processing facilities in B.C. and equipment, food business advisory services,
other Canadian provinces: product development services, analytic
services, applied research opportunities,
and education and training related to food
BC Food Hub Network Shared-Use
processing and food safety.
Processing Facilities
• Zest Commercial Food Hub, Salmon Arm,
• Commissary Connect, Vancouver, B.C.:
B.C. (launching 2021): The Zest Food Hub, led
Commissary Connect is a leader in people-
by the Salmon Arm Economic Development
focused, professionally-run, shared-use
Society, will offer food and agriculture
commercial kitchen spaces. The facility offers
businesses in the Shuswap Region access to
its member businesses 24/7 access to shared-
shared food and beverage processing space,
use processing facilities, technology, and
equipment, and services.
equipment to assist with the booking and
billing of equipment and business advisory and
• Cowichan Valley Food Hub, Cowichan
product development services. Commissary
Valley, B.C. (launching 2021): The Cowichan
Connect’s Laurel Street facility in South
Valley Food Hub, led by the Cowichan
Vancouver is the Pilot and Demonstration Food
Green Community Society, will offer a
Hub of the BC Food Hub Network.
commercial teaching kitchen, processing
kitchen, and aggregation space to local food
• Plenty & Grace Food Hub & Innovation Centre,
producers and processors.
Surrey, B.C.: Plenty & Grace is a shared-use,
commercial manufacturing space focused on
• Thompson-Nicola Food Hub, Kamloops, B.C.
the processing of local B.C. fruits, vegetables,
(launching 2021): The Thompson-Nicola Food
tree nuts and herbs for value-added
Hub, led by the Kamloops Food Policy Council,
production. In addition to offering shared-use
will help local businesses in Kamloops access
food processing space, Plenty & Grace offers
shared commercial kitchens and a training
services including co-packing, food business
centre for food and beverage processing.
consulting, lab services, B.C. ingredient
sourcing, and product distribution support.
• Capital Region Food Hub, Victoria, B.C.
(launching 2021): The Capital Region Food
• The Dock+, Port Alberni, B.C.: The Dock+ is
Hub, led by the Victoria Community Food Hub
a shared-use food processing facility that
Society, will offer a shared processing and
provides businesses affordable access to
packaging facility, and aggregation space to
processing space and specialized equipment.
local processors and producers.
The Dock+ is comprised of a shared-use
commercial kitchen, offering space for
processing agricultural commodities or seafood
processing, including services such as smoking,
blast freezing, and cold storage space.
Part I: A Step-by-Step Guide 7• Fraser Valley Artisan Food Hub, Abbotsford, consumer research and analysis, including
B.C. (launching 2021): The Fraser Valley Food assisting clients in understanding their current
Hub, led by the Mission Community Skills and potential markets, consumer preferences,
Centre Society, will offer shared kitchen and developing operational or brand support.
space for food processing and commercial
production, and customized training programs • The Alberta Food Processing Development
for the food sector. Centre, Leduc, Alberta: The Alberta Food
Processing Development Centre is a modern,
• Centre for Seafood Innovation, Bowser, B.C. fully-equipped, pilot plant and product
(launching 2021): The Centre for Seafood development laboratory facility staffed with
Innovation, led by Vancouver Island University, experienced food scientists, engineers and
will offer seafood producers and processors technologists who work with entrepreneurs to
commercial test kitchen space, laboratories, develop and fine-tune their products.
and event and training space. The centre will
offer services including applied R&D, product • The Kitchen Collective, Hamilton, Ontario: The
development, regulatory coordination and Kitchen Collective is a non-profit, affordable
consulting, food safety testing, and training commercial kitchen and culinary incubator
and education to the seafood sector. designed to give aspiring entrepreneurs a
boost in the industry as well as a collaborative
• Kootenay Boundary Food Hub, Rock Creek space in which to launch their business and
and Greenwood, B.C. (launching 2021): The learn from each other. As a co-operative,
Kootenay Boundary Food Hub, led by the the Kitchen Collective is owned and
West Boundary Community Services Co- operated by its members, allowing the
op Association, will offer a co-packing and services provided to remain in line with the
processing kitchen to meat producers in needs of its membership.
Rock Creek, and a bakery test kitchen to
processors in Greenwood. • BIO|FOOD|TECH, Charlottetown, Prince
Edward Island: BIO|FOOD|TECH provides
• Central Kootenay Food Hub, Creston, B.C. professional technical services to the food
(launching 2021): The Central Kootenay and bioprocessing industries from concept,
Food Hub, led by Fields Forward, will to pilot, to market through three integrated
offer co-packing space, shared-use food business divisions: food technology, bioscience
packaging space, storage facilities, and technology, and lab services.
wet and dry processing equipment to local
producers and processors. In addition to the shared-use processing
facilities and food innovation centres mentioned
Other Shared-Use Processing Facilities above, there are many other examples located
across Canada and in other countries that can
• BC Beverage Technology Access Centre, serve as models and resources to inform the
Penticton, B.C.: Okanagan College’s BC development of new initiatives.
Beverage Technology Access Centre is a new
federally-funded technology access centre that
will provide services to the wine, beer, spirits,
cider, and beverage industries through new
and existing product development, testing,
and technology. It will also offer market/
8 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan Guidebook2.0 Planning Your Shared- 2.1 Feasibility Study
Use Processing Facility A feasibility study for a shared-use processing
facility generally consists of an assessment of the
A critical component of developing shared-use
needs of local food producers and processors
processing facilities is conducting feasibility
(target clients) in the areas of processing, food
studies. This early scoping activity will help you
safety, training and education, research, business
to tailor your business to meet client needs,
development support, facilities, storage and
identify opportunities, and assess financial
equipment. Appendix B provides a feasibility
feasibility. Undertaking this thorough market
study template. A feasibility study may also
assessment may reaffirm your business idea
consist of a broader market assessment,
or help you identify adaptations for your
considering the demand or market opportunities
business to better meet the needs of your
for the types of processed products that would
target market. If your findings indicate that
be produced at the shared-use processing facility,
a shared-use processing facility in your region
helping to inform the type of processing and
would be in demand, financially sustainable
equipment to focus on and/or which clients to
and logistically sound, the next step is to
engage. The market assessment can also inform
develop a business plan.
the financial viability of a shared-use processing
Prior to establishing a feasibility study, an online facility at the proposed location.
search and engagement with regional food
Hiring a consultant to conduct your feasibility
and agriculture organizations is recommended,
study is recommended to establish an objective
to see if previous feasibility studies or similar
view on the viability of your business; however,
projects have been completed for shared-use
in-house assessments are possible when funding
processing facilities or related industry supports
constraints exist. The creation of an advisory
in your area. Consulting these reports can reveal
body, comprised of industry and project
insights relevant to your study and can save
stakeholders, is a mechanism that can provide
you time and money. For example, in 2019,
guidance to the development of the business.
the Ministry of Agriculture, Food and Fisheries
Section 4.1 offers examples of business planning
conducted a food and beverage processing
consultants and Section 4.3 includes additional
industry survey to identify the needs, challenges
business planning resources.
and opportunities of B.C. food and beverage
processors. Appendix A provides a summary of Prior to completing your feasibility study, it is
the top interests of both the overall sector and suggested that you review the business plan
B.C. regions that were identified by the survey outline in Section 3, which includes guiding
that your business may want to consider during questions that you may wish to consider during
the market assessment process. the development of your feasibility study.
If your shared-use processing facility model is
determined to be viable, a business plan can be
established for your facility using the outline in
Section 3. Your feasibility study will form the basis
of your business plan report and information
from the feasibility study is often transferrable
to the business plan.
Part I: A Step-by-Step Guide 92.2 Business Plan Executive Summary
What to include here:
As with the feasibility study process, engaging
with industry and collecting feedback from A brief summary of the contents of the business
potential clients is valuable for the business plan, which can be written after completing the
planning process. Advice from industry other sections of the plan. What to include here:
experts can be sought during business plan
development or for review of the completed
• What are key takeaways from each
business plan. Unlike feasibility studies, business
section of this report?
plans are generally completed in-house but may
also be written with assistance from a business
planning consultant. Business Overview
For developing your business plan, see the Business Description
‘Shared-Use Food and Beverage Processing What to include here:
Facilities in B.C. Business Planning Guidebook
– Part II: Business Plan Template’ for a usable
business plan template. Instructions on how • Why are you interested in developing a shared-
to complete the business plan template and use processing facility?
additional guiding questions that are specific to
shared-use processing facilities are provided in • Within which city/region will your
Section 3 of this guidebook. facility be located?
In addition to this guidebook’s business plan • Who are your target clients (e.g., any type
template, it may be helpful to familiarize of food and beverage business, a specific
yourself with other business plan templates sub-sector of food and beverage processing,
available online for additional ideas on content caterers, bakers, food trucks, others)?
and layout. As reports vary, it is recommended
to review online business planning resources Mission, Vision and Values
and information that are most relevant to your
shared-use processing facility concept and that What to include here:
meet the criteria of your report’s audience (e.g.,
banks, investors, funding agencies). • What is your mission statement?
• What is your vision and what are your values?
3.0 Business Plan Outline
• Will your shared-use processing facility generate
The following business plan outline includes social benefit(s) (e.g., food security, food
instructions on how to complete the business literacy, training and skills development)?
plan template (see the ‘Shared-Use Food and
Beverage Processing Facilities in B.C. Business • How will your shared-use processing
Planning Guidebook – Part II: Business Plan facility model align with your
Template’) and guiding questions related to mission, vision and values?
general business considerations and those
unique to shared-use processing facilities in B.C.
10 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookOwnership, Governance Regional Overview and Market Trends
and Management Team What to include here:
What to include here:
• What are the main production and processing
• What will be the legal structure of the facility activities occurring in the region?
(e.g., sole proprietorship, general partnership,
corporation, cooperative, non-profit • What are the current trends for the region
organization, social enterprise)? Consider the and what is the outlook for the region?
structure that best suits your objectives (e.g., Are there emerging markets or niche
social, financial or both), your activities, and product opportunities?
your expected sources of funding/income. If
you are not sure which structure is best suited • Are there geographic features or limitations
to your facility, a lawyer or accountant can for the region (e.g., proximity to ports, rural
advise from a legal and financial perspective. setting, primary agricultural commodities)?
Information is also available online on
business structures, societies (not-for- Needs Assessment and Gap Analysis
profit corporations) and different structures
What to include here:
for social purposes.
• Who will own the operation? What • What infrastructure, equipment and
makes them qualified? services are not currently offered in
your region? Identify needs that are not
• Who will manage the operation? What being met by existing industry supports
makes them qualified? and conduct research on why these
needs are not being met.
• Is it important to have a Board of Directors
and/or an advisory group? If yes, what • If suitable infrastructure, equipment, and
are the roles and responsibilities of the services are offered but underutilized,
members and what will the selection determine what barriers or challenges
process, service term and compensation (if prospective clients are facing. Are existing
applicable) be for the members? supports too expensive? Are there regulations
limiting the availability of these resources?
Market Research • Which gaps will you fill and how?
Industry Overview and Trends Note: Appendix C provides examples of shared-use processing facility spaces,
What to include here: equipment and services for which you may wish to assess demand during
your market research.
• Who is part of the industry and how
large is the industry?
• What are the current trends in the industry and
what is the industry outlook?
Part I: A Step-by-Step Guide 11Target Market and Clients Competitor Analysis
What to include here: What to include here:
• Will your facility serve all types of food and • Who are your direct and indirect competitors?
beverage processors, or will it focus on a What do they offer and what will you offer?
specific sub-sector or commodity area (e.g.,
seafood sector, berry processing)? Focusing • What is your positioning strategy? In other
on a segment of the sector may allow for the words, what will you do to differentiate your
establishment of more specialized support facility from others? Identify infrastructure,
and the ability to afford and house specialized equipment and services already available to
equipment, however, it may also result in your target clients and determine ways to
having a smaller client base. Describe who differentiate your business.
your target clients are (e.g., type of business,
company size, location) and their existing
level of demand for processing infrastructure,
Facilities, Equipment
equipment and services. and Services
What to include here:
• Will you have anchor tenants? Anchor tenants
are permanent or long-term users of a facility.
Anchor tenants can contribute to the success • For what purpose(s) do your target clients
of a shared-use processing facility by providing need your facility? What type of physical
regular rental income, helping to determine space and design would best support the
equipment needs and facility design during targeted activities?
the construction phase of the facility (if the
anchor tenants are confirmed in advance) and • Is there seasonality to the type of processing
providing mentorship to other clients. that would occur in your facility? If yes, how will
revenue be generated off-season?
• What are your prospective client’s target
market channels (e.g., farmers’ markets, • What are the components of your facility and
catering and events, food trucks, independent its services that will generate revenue?
retailers, national retailers, public institutions,
export markets)? Note that the market Location
channels of your prospective clients have What to include here:
implications for food safety requirements and
the facility scale/production capacity your
• Will you operate a single facility or multiple
facility will need to meet.
facilities? If multiple, will each location offer the
same or different equipment and services?
• Will you offer an on-site retail market
for food processors to sell directly to
• Will your facility be established within existing
consumers? Describe your targeted retail
infrastructure or require the development of
audience and their needs.
new infrastructure? What construction and
renovations will be required?
• Will you offer training and workshops? Describe
your target audience and their needs.
12 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan Guidebook• Is your facility location accessible to clients? Food Safety Requirements
Consider how far potential clients are
What to include here:
willing to travel to access your facility. Is
the location accessible to market channels/
distribution routes? • What food safety requirements are needed
for the proposed processing activities
• Will your facility adhere to local and target buyers of the food? The facility
government by-laws/zoning? must be inspected and permitted by
either the provincial Health Authority for
your region or by the Canadian Food and
Equipment and Suppliers Inspection Agency (CFIA).
What to include here:
• In addition to the inspection of and permit
• What equipment and supplies will you for the facility itself, the individual businesses
include at your facility to support clients’ operating within the facility will require food
needs, processing activities and other safety plans and may require third party food
market opportunities? safety certifications, such as Hazard Analysis
Critical Control Points (HACCP), if selling to
• Will you own all of the equipment or will retail chains, institutions or export markets.
you have anchor tenants who purchase and
install their own equipment? If anchor tenants » Having a food safety plan can provide a
invest in equipment, will it be available for number of benefits. Businesses that are
other businesses to use? following a food safety plan program
and receive a high audit and inspection
• Will you purchase (new or used) score can secure a reduced rate for recall
equipment or lease equipment? insurance. Recall insurance is not covered
under general business insurance but may
• How much will your be added at an additional cost. In addition,
equipment and supplies cost? businesses who follow a food safety plan
program can be looked at more favourably by
• Will any of the equipment be mobile and banks for business loans.
available for use off-site?
• What Standard Operating Procedures (SOPs)
• Will you require an in-house food testing lab are required for all clients of the facility to
or equipment for offering food safety and/or follow to meet food safety regulations/
product research and development services? standards within the shared space? Shared-
use processing facilities provide space to
• How often will your facility’s equipment be multiple businesses within a single facility
serviced, and where? and therefore require protocol that is shared
across clients, as well as food safety plans for
each individual client.
• Are there any additional regulatory
requirements to be considered (e.g., allergen-
free, certified organic)?
Part I: A Step-by-Step Guide 13• See Table 1 below for an overview of regulatory and industry requirements. It is recommended
that you contact your Environmental Health Officer (EHO) through your local health authority
early-on during the business planning process to confirm the necessary regulatory and industry
requirements for your facility.
TABLE 1. OVERVIEW OF POTENTIAL REGULATORY AND INDUSTRY REQUIREMENTS
Potential Regulatory and
Examples of When Required
Industry Requirements
Regional Health Authority License to • All food processing facilities require, at a minimum, approval by a
Operate Health Authority to operate (with the exception of meat, seafood and
milk processing facilities, as they require provincial/federal approval).
• The following Health Authorities in B.C. provide information on food
establishment operating permits:
• Fraser Health
• Interior Health
• Island Health
• Northern Health
• Vancouver Coastal Health
• Additional food safety information is available from the following
Health Authorities in B.C.:
• Provincial Health Services Authority
• First Nations Health Authority
• Resources on writing food safety and sanitation plans are available on
the Government of B.C. website.
• Information on provincial food safety legislation is available on
the BC Laws website:
• B.C. Food Safety Act
• B.C. Food Premises Regulation
Safe Food for Canadians Regulations, • Safe Food for Canadians Regulations primarily apply to food that is
administered by the CFIA imported, exported and traded inter-provincially. Some requirements
may also apply to certain foods sold intra-provincially. See the CFIA’s
online Regulations Toolkit for full details.
HACCP or similar third-party food • HACCP or similar third-party certifications are industry standards
safety certification required by certain buyers/markets, such as:
• Institutions/food service organizations
• Distributors
• Large retailers
• Inter-provincial markets
• Export markets
• HACCP is also a set of principles employed in food safety plans.
ISO Lab Accreditation • Third party accreditation for food testing labs may be required to meet
certain food safety regulations or industry standards.
14 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookFloor Plan Operations Plan
What to include here:
Operational Staff
• How will you design your facility to maximize What to include here:
space and best support your activities? Shared-
use processing facilities can be designed in • What are the staff positions required for
many ways (e.g., clients may use the same operating the facility?
space/equipment at different times, dedicated
client stations can be created, or separate • What are the key roles and responsibilities
rooms outside the production areas can be of each staff person?
created for additional purposes such as testing
and research). Consider exploring existing • What qualifications will be required
facility designs by visiting other shared-use for each staff person?
processing facilities in-person or virtually, or by
conducting research online. • What are the training requirements for
each staff person? Food safety knowledge
• What will your floor plan for the facility look is a regulated requirement in B.C. It is
like? When developing a floor plan, consider recommended that requirements for
your potential clients and the possible staff training are determined during the
challenges of cross contamination, workflow business planning process and included
and demand for space and equipment and as a continual operating expense. Consult
how to minimize potential risks. Consider with your Environmental Health Officer at
engaging a food processing consultant and/or your regional Health Authority or use the
engineer to aid in the facility design. HealthLinkBC Directory to connect with
resources and assistance to determine staff
• How will your design account for food safety training requirements.
requirements (e.g., hand washing stations,
bathrooms, HVAC system, etc.)? Consult • What are the anticipated salaries (or
with your Environmental Health Officer at salary range) of each staff person?
your regional Health Authority or use the What would be included in each staff
HealthLinkBC Directory to connect with person’s benefits package?
resources and assistance.
Partnerships
• How will indoor and outdoor spaces be
What to include here:
designed? Consider loading docks and
transportation vehicles.
• Are there organizations that offer
• How much storage space is needed (e.g., complimentary services or programs in your
dry, cold and freezer storage)? What are the region (e.g., post-secondary institutions,
needs of your clients? culinary colleges, academic departments,
business development organizations, industry
organizations, First Nation organizations,
economic development groups, local
governments, other shared-use processing
facilities, food testing labs, business accelerator
programs)? Is there an opportunity to build
Part I: A Step-by-Step Guide 15partnerships with these organizations business situation. The analysis may reveal areas
to expand the reach of your proposed for your business to build on, resolve, expand,
services/client offerings? or avoid and can help to determine important
business management decisions and direction.
• Will your partnerships be long-
term or project-based? What to include here:
• What are the roles and • What are your facility’s internal strengths?
responsibilities of each partner?
• What are your facility’s internal weaknesses?
• Are potential partners interested in
investing in your business? • What external opportunities can you leverage?
• What are the external threats to
Client and Company your facility’s success?
Policies and Procedures
What to include here:
STRENGTHS WEAKNESSES
• If your facility’s capacity is outweighed by NEED CONTENT NEED CONTENT
demand, how will you select your clients? OPPORTUNITIES THREATS
How will you handle interested clients that are
competing businesses? NEED CONTENT NEED CONTENT
• How will you handle clients’ proprietary Pricing Strategy
business information?
What to include here:
• Will you require clients to graduate after
using the facility for a certain period of time • How much are prospective clients willing to
(e.g., an incubator-oriented model) or will pay for desired space, equipment and services?
they be able to access your facility for an
unlimited period of time? • At what frequency will your clients require
access to space, equipment and services
• What policies and procedures will you (e.g., daily, occasional use, one-time product
implement for your clients to follow and what development consultations)?
resources will be available for your clients
to access (e.g., cleaning and food safety • How much are your competitors charging?
procedures, scheduling and billing systems)?
• What will you charge and what is the
anticipated demand for your space,
Marketing equipment and services?
and Sales Strategies
SWOT Analysis
A SWOT analysis will help you to identify
strengths, weaknesses, opportunities, and
threats to provide an overview of your strategic
16 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookMarketing and Promotions Strategy or equipment during a certain time of
the day or size and/or business model of
What to include here:
your client’s business)?
• How will you find clients? • Will you offer bundle discounts to clients if they
access more of your equipment and/or facility?
• How will clients find you? Consider industry
directories and raise your business profile • Will you offer services or programs at a fee?
by adding your business to directories such
as BC Food Connection. • Does your chosen legal structure enable you
to seek the investments, grants and loans
• Which marketing channels will allow you that you may require?
to best reach your target clients (e.g., social
media, web media, printed materials,
radio, networking events)? Sources of Funding
What to include here:
• How much funding and time will you allocate
to each marketing channel? • Which financial supports will you access
for start-up and operational costs (e.g.,
Financial Plan business loans, grants, crowdfunding, in-kind
donations)? Section 4.2 offers an overview
Start Up and Overhead Costs of funding and financing opportunities
What to include here: relevant to shared-use processing facilities
in B.C. Developing a shared-use processing
facility requires strong capital investment and
• What are the major costs of starting up your significant financial planning. Exploring a range
shared-use processing facility (e.g., building, of revenue and fundraising opportunities to
renovations, equipment, consulting, labour)? support financial viability is recommended.
• What are the major and total recurring costs • How much funding are you eligible for?
that your operations will incur (e.g., rent, What criteria do you have to meet and
utilities, wages, building and equipment which processes do you have to follow
maintenance, permits, supplies, cleaning to secure the funding?
services, disposal and waste management
services, security)?
Pro-Forma Financial Statements
Revenue Streams What to include here:
What to include here:
• Can the facility be self‐sustaining within a
reasonable amount of time? When will break
• How much will you charge for your space, even/profits begin to occur?
equipment and services and what fee structure
will you use (e.g., hourly/weekly/monthly/ • What specific costs and revenues do you
yearly or per-use rates)? anticipate for your facility?
• Will you charge clients using a sliding • Will your facility generate adequate cash flow?
scale (e.g., based on the use of the space
Part I: A Step-by-Step Guide 17Projected Four-Year Income Statement
YEAR 1 YEAR 2 YEAR 3 YEAR 4
REVENUES
Facility Rentals
Equipment Rentals
Services
Donations/Grants
Other
Gross Profit
EXPENSES
Rent/Mortgage
Renovation Fees
Equipment
Salaries and Wages
Office Supplies
Phone, Internet
Permits, Certifications
Insurance
Marketing
Other
Total Expenses
NET PROFIT
18 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookPro-Forma Balance Sheet [Year 1]
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash Loans
Accounts Receivable Accounts Payable
Prepaid Expenses Accruals
Supplies Wages Payable
Other Other
Investments Long-term Liabilities
Land Term Debt
Building Other
Equipment and Machinery Total Liabilities
Less: Accumulated Depreciation SHAREHOLDER’S EQUITY
Other Common Shares
Other Assets Retained Earnings
Contributed Surplus
Total Assets Total Liabilities and S/H Equity
Part I: A Step-by-Step Guide 19Implementation Plan • Are there successful businesses that have
implemented a model similar to yours? What
What to include here: has made them successful?
• Will your operations launch all at once or • What is the timing required to build your
in a phased approach? facility and obtain health, safety and building
permits and certifications, including the
time required to prepare for and conduct
inspections and receive approvals?
PHASE/PROJECT/ACTION LEAD DEADLINE/ANTICIPATED OUTCOMES
Timeline
PHASE/ PROJECT/ MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
ACTION
Activity 1
Activity 2
Activity 3
Activity 4
20 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookPerformance Strategies 4.0 Additional Resources
What to include here:
4.1 Business Planning
• What are your main goals and key strategies Consultants
for the shared-use processing facility during the
next one to three years? The following consultants are experienced in
developing shared-use food and beverage
• What performance strategies will you processing facility-related feasibility studies and
implement and what performance metrics will business plans for B.C. entities:
you use to determine the facility’s success?
• Tapestry Evaluation and Strategy
Risks and Mitigation Strategies
What to include here: • Sustainability Ventures
• Greenchain Consulting
• What are the anticipated risks for your facility?
• Farm|Food|Drink
• What mitigation strategies can be
identified for each risk? • Urban Food Strategies
Exit Strategy The Ministry of Agriculture, Food and Fisheries’
What to include here: B.C. Agri-Business Planning Program and B.C.
LEAN for Food Processors Program also outline a
• What are your long-term plans for the list of qualified business consultants that may be
shared-use processing facility (e.g., going relevant to your business planning project.
public, expanding to additional locations,
selling your business)? 4.2 Funding Opportunities
• How will you position your operation Many industry associations, private organizations
to meet these plans? and federal, provincial and municipal
governments offer a variety of business grants
Conclusion and loans. Below is a non-exhaustive list of
funding programs that may be of interest for
What to include here: your shared-use processing facility for either
start-up, operational or project-based financing.
• What are the key takeaways Please consult the resource directly for a
of your business plan? complete list of current opportunities, eligibility
and application periods.
• Restate your funding or financial
requirement and its importance.
Part I: A Step-by-Step Guide 21FUNDING RESOURCE DESCRIPTION
B.C. Ministry of Programs for the agriculture, seafood and processing sectors. Grant programs include
Agriculture, Food support for business planning, Indigenous communities and food safety. Available at:
and Fisheries https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs
Investment Non-profit organization administering federally- and provincially-funded programs
Agriculture for agriculture and food sectors in B.C. Available at: https://iafbc.ca/home/
Foundation of B.C. funding-opportunities/
Innovate BC A variety of funding opportunities for innovative research and technology-related projects
in the province. Available at: https://innovatebc.ca/what-we-offer/get-funding/
Agriculture and Agri- Federal programs and services for agriculture and food businesses. Available at: https://
Food Canada www.agr.gc.ca/eng/agricultural-programs-and-services
Canadian Federally-funded activities and programs to support growth in the agriculture, seafood
Agricultural and food processing sectors. Available at:
Partnership https://www.agr.gc.ca/eng/about-our-department/key-departmental-initiatives/
canadian-agricultural-partnership/canadian-agricultural-partnership-federal-
activities-and-programs
Local Food The Local Food Infrastructure Fund (LFIF) is a five-year, $50 million initiative ending
Infrastructure Fund March 31, 2024. The program is part of the Government of Canada’s Food Policy, which is
(AAFC) Canada’s roadmap for a healthier and more sustainable food system. The LFIF objective is
to strengthen food systems and to facilitate access to safe and nutritious food for at-risk
populations. https://www.agr.gc.ca/eng/agricultural-programs-and-services/local-food-
infrastructure-fund/?id=1560701480448
Investment Funded by the Government of Canada, the Investment Readiness Program (IRP) supports
Readiness Program social purpose organizations as they contribute to solving pressing social, cultural
and environmental challenges across Canada. The IRP’s goal is to help social purpose
organizations build their capacity to participate in Canada’s growing social finance market.
https://www.communityfoundations.ca/initiatives/the-investment-readiness-fund/
Regional and First Regional organizations that support social and economic development initiatives,
Nations Economic including through funding opportunities, that may include opportunities for shared-use
Development Trusts food processing initiatives or other community-based food initiatives. List of regional
trusts is available at: https://www2.gov.bc.ca/gov/content/employment-business/
economic-development/support-organizations-community-partners/economic-
development-organizations
Community Futures Business resources and small business loans for entrepreneurs in communities
across B.C. Find your local Community Futures office at: https://www.
communityfutures.ca/network-map
Additional funding opportunities may be
available through industry associations, private
foundations and financial institutions.
22 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan Guidebook4.3 Suggested Resources step in planning your facility. The B.C. Ministry
of Agriculture, Food and Fisheries is not
Below are some resources relevant to planning affiliated with each resource listed below and
a shared-use processing facility in B.C. We does not assume responsibility for the content
suggest browsing these resources as a next presented in each resource.
RESOURCE DESCRIPTION
Shared-Use Food Processing
Shared Kitchen Toolkit: A Shared Kitchen Toolkit developed by The Food Corridor and Fruition Planning and
A Practical Guide to Management. This comprehensive, 166-page toolkit is based in the U.S., although
Planning, Launching and most information is transferrable to the B.C. context. Available at: https://www.
Managing a Shared-Use thefoodcorridor.com/resources/
Commercial Kitchen
The Shared-Use Kitchen A Shared-Use Kitchen Planning Toolkit developed by the Leopold Center for
Planning Toolkit Sustainable Agriculture in collaboration with Iowa State University Extension
and Outreach. Although some details are specific to Iowa, most information is
transferrable to the B.C. context. Many sample documents are provided such as client
applications and rental agreement contracts. The toolkit includes a sample operations
budget and template, but keep in mind that the values are based on U.S. markets and
are presented in USD. Available at: https://www.leopold.iastate.edu/files/pubs-and-
papers/2014-09-shared-use-kitchen-planning-toolkit.pdf
General Food Processing
B.C. Ministry of This webpage directs to a variety of resources related to business planning, business
Agriculture, Food and management and sector guidance. The webpage also directs readers to information
Fisheries’ Food and on the B.C. food and beverage processing sector, including key industry associations
Beverage Processing and statistics that can help with conducting a market assessment.
Webpage Available at: https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/
business-market-development/food-beverage-processing
B.C. Ministry of Food processing businesses in British Columbia are required to implement formal food
Agriculture, Food and safety plans to ensure their products are safe for consumption. This page provides
Fisheries Food Safety in information on requirements and resources for implementing good manufacturing
Processing practices and building and maintaining a strong food safety culture in a processing
facility. Available at: https://www2.gov.bc.ca/gov/content/industry/agriculture-
seafood/food-safety/food-safety-processing
Operating Permits This page provides information on applying for a health operating permit, which all
– Regional Health food service businesses in B.C. must have. These are issued by health authorities and
Authorities a link to each of the regional Health Authorities that administer operating permits
is provided. It is recommended that an Environmental Health Officer be contacted
early on when planning for the development of a food processing facility. Available
at: https://www2.gov.bc.ca/gov/content/employment-business/business/managing-
a-business/starting-a-business/starting-a-restaurant-in-bc/permits-licences/
health-operating-permit
Small-Scale Food An association providing a diversity of resources for small-scale food processors in B.C.
Processors Association Available at: https://www.ssfpa.net/
Part I: A Step-by-Step Guide 23RESOURCE DESCRIPTION
BC Food and Beverage An association providing a diversity of resources for food and beverage processors in
Association B.C. Available at: https://www.bcfpa.ca/
Food Processing Skills Provides resources for food processing sector skills development and training and
Canada labour market analysis, as well as funding support, e-learning and certification.
Available at: https://fpsc-ctac.com/
Post-Farm Food Safety The Post-Farm Food Safety (PFFS) Program provides funding for activities such
Program as identifying and documenting food safety risks, implementing food safety
activities, attaining food safety improvement services, upgrading facilities and
equipment, and achieving third-party HACCP based audits. Available at: http://
bcpostfarmfoodsafety.com/
Business Advisory
AgriService BC AgriService BC offers a variety of tools and guides for agriculture and food
businesses. The Running an Agrifood or Farm Business webpage directs readers
to relevant business information such as financial management, human resources
and risk management.
Available at: https://www2.gov.bc.ca/gov/content/industry/agriservice-bc/
agriservice-bc-food-processors
B.C. Small Business Information on provincial government programs and services for small businesses is
Branch available at www.gov.bc.ca/smallbusiness and a guide for starting a small business in
B.C. is available at www.gov.bc.ca/startingasmallbusiness
Business Development The Business Development Bank of Canada offers tips, advisory support and business
Bank of Canada (BDC) start-up guides for Canadian entrepreneurs.
Available at: www.bdc.ca/en/articles-tools/start-buy-business
Small Business BC Small Business BC helps British Columbia’s entrepreneurs grow successful and
sustainable businesses through expert business advisors, educational services,
easy-to-use free resources and engaging community events. Available at:
https://smallbusinessbc.ca/
24 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan GuidebookAppendix A: 2019 B.C. Food » Top Interests of the South Coast
Region Food and Beverage Production
and Beverage Industry and Processing Sector:
Survey Results » Processing technology training
Below is a summary of the top interests of the » Food/health and safety training
food and beverage production and processing
sector in B.C. – both in general and specific » Business development services
regions of B.C. – as identified by the 2019 B.C. » Product or production consultation services
food and beverage industry survey conducted by
the Ministry of Agriculture, Food and Fisheries.
• Top Interests of the Vancouver Island/Coast
Region Food and Beverage Production
• Top Interests of the B.C. Food and Beverage and Processing Sector:
Production and Processing Sector:
» Processing technology training
» Financing and Funding Support
» Food/health and safety training
• Access to financial » Business development services
programs/funding support
» Product or production consultation services
• Simpler financing options
• Assistance with funding applications • Top Interests of the Okanagan Region Food and
Beverage Production and Processing Sector:
» Networking
» Business development services
• Networking events » Product or production consultation services
• Connections to food distributors, » Research and development
food scientists and other services or facilities
supply chain stakeholders
• Top Interests of the Food and
» Co-Packing Services Beverage Production and Processing
» Consultation Services Sector in Other Regions*:
• Small business mentorship/coaching » Processing technology training
• Understanding regulations, cross border » Food/health and safety training
sales, distribution and marketing » Food handing and/or storage services
• Assistance related to intellectual » Leased, rented or shared
property (legal assistance) equipment and/or technology
*The ‘Other Region’ primarily represents the Kootenay, Thompson-Nicola,
Cariboo Chilcotin Coast, Omineca-Skeena and Peace regional areas.
Part I: A Step-by-Step Guide 25Appendix B: Feasibility 5.5 Suggested Next Steps
Study Template 6.0 Conclusion
Appendices
Contents
1.0 Executive Summary 1.0 Executive Summary
2.0 Introduction
What to include here:
2.1 Purpose of Study
• A brief summary of the contents of the
2.2 Lead Organization and/or Project
feasibility study, which can be written after
Manager(s) Leading the Study
completing the other sections of the study.
3.0 Methodology
• What are key takeaways from each
3.1 Project Timeline section of this report?
3.2 Project Funding
3.3 Environmental Scan 2.0 Introduction
3.4 Industry/Client 2.1 Purpose of Study
Engagement Process
What to include here:
4.0 Findings
4.1 Overview of the Regional • Why is the feasibility study being conducted?
Agriculture and Food Sector
• What outcome(s) are you trying to achieve by
4.2 Existing Infrastructure and conducting the feasibility study?
Services in the Region
4.3 Related Studies in the Region
2.2 Lead Organization and/or
4.4 Regional Industry/Target Client Project Manager(s) Leading
Needs and Opportunities
the Study
4.5 Proposed Facility Model
What to include here:
4.6 Financial Projections
5.0 Recommendations • Who is the lead organization and/or who
is/are the project manager(s) leading
5.1 Vision and Opportunities for the the feasibility study?
Shared-Use Processing Facility
5.2 Governance Structure • Describe the lead organization and/or the
project manager(s) and provide a brief
5.3 Potential Facility Locations overview of their qualifications.
5.4 Potential Challenges
and Opportunities
26 Shared-Use Food and Beverage Processing Facilities in B.C. Business Plan Guidebook3.0 Methodology 3.4 Industry/Client
3.1 Project Timeline Engagement Process
What to include here:
What to include here:
• How will you engage with industry or clients
• What is the timeline for completing the
relevant to the shared-use processing facility
feasibility study (i.e., identify each activity to
project (e.g., online surveys, interviews, town-
be completed, the start and end dates for
halls, focus groups, etc.)?
each activity, and a breakdown of the hours
required for each activity)?
4.0 Findings
3.2 Project Funding 4.1 Overview of the Regional
What to include here: Agriculture and Food Sector
• How is the development of the feasibility What to include here:
study being funded (i.e., funding
from financial institutions, grants, • What are the main production and processing
organizations, individuals, etc.)? activities occurring in the region?
• 3.3 Environmental Scan • What are the current trends for the region
and what is the outlook for the region?
• What to include here: Are there emerging markets or niche
product opportunities?
• How will you identify the existing
production and processing activities • Are there geographic features or limitations
occurring in the region? for the region (e.g., proximity to ports, rural
setting, primary agricultural commodities)?
• How will you identify existing agriculture and
food sector infrastructure and services that
exist in the region? 4.2 Existing Infrastructure
and Services in the Region
• How will you identify the current trends
in the agriculture and food sector that What to include here:
exist in the region?
• What infrastructure, equipment and services
Note: Identify the region within which you will be searching for this information
(e.g., within the Metro Vancouver Regional District, etc.).
are currently offered in your region? What
infrastructure, equipment and services are not
currently offered in your region? Identify needs
that are not being met by existing industry
supports and conduct research on why these
needs are not being met.
Part I: A Step-by-Step Guide 27You can also read
